Sustainability

Sustainability

Promoting Sustainability

Views on Sustainability

The OPEN HOUSE Group promotes sustainability aiming to contribute to the realization of a sustainable society through our business activities while achieving sustainable corporate growth.

As stated in our corporate philosophy, the Group has been pursuing houses that customers want honestly and constantly, while working on our business with the mission of “leaving a Japan for the next generation where working people can afford houses in urban areas.”

By providing affordable housing in urban areas, we aim to fulfill needs for both social and business value by creating shared value.
In addition, the Group is keenly aware of the social responsibility associated with our business activities and our contributions toward achieving SDGs, and we are promoting initiatives through our business activities for issues related to ESG (environment, social and governance).

Material Issues

There are a wide variety of issues related to ESG (environment, social and governance) that involve the Group. However, among those, the Group has identified the following six material issues as important issues that the Group should especially focus on in our efforts.

When identifying material issues, we refer to various sources of information, such as GRI (Global Reporting Initiative), ISO26000 and SDGs, and include the opinions of shareholders, investors and other external stakeholders, as well as external consultants and experts.

ESGMaterial IssuesRelevant SDGs
EnvironmentEnvironmental conservation
SocialProduct safety and security,
and customer satisfaction
Talent development
Work-style reforms
Supply chain management
GovernanceCompliance

Promotion Organization

The Group has established the Sustainability Committee, which operates under the oversight of the Board of Directors, manages the progress of our response to ESG risks by materiality item and collects information on initiatives from individual operating divisions and Group companies.
The progress and results are reported to the Sustainability Committee and important subjects discussed at this committee are regularly reported to the Board of Directors.

Relationship with Stakeholders

Our business is made possible through the involvement of a wide range of stakeholders including our customers, shareholders, local communities, governmental and administrative agencies, business partners, and officers and employees. Because our business activities centered on home building involve many stakeholders, we believe that building a relationship of trust with those stakeholders is important in promoting sustainability.
Our relationship with the customers who live in the homes we sold and with stakeholders in the local communities is particularly strong in terms of building a sustainable society together. Creating opportunities for dialogue and reflecting that dialogue in our business activities is essential in realizing our goal for creating shared value (CSV) of “providing the houses that customers want.”
Furthermore, “Appropriate Cooperation with Stakeholders Other Than Shareholders” and “Dialogue with Shareholders” are parts of the basic principles of the Tokyo Stock Exchange’s “Corporate Governance Code.” As such, we hold dialogue in various formats with stakeholders and promote multiple initiatives to reflect those opinions in our management.

StakeholdersMain opportunities for dialogueRelevant themes
Customers・Conducting the NPS questionnaire*
・Establishing the Customer Service Office
・Communication through sales activities
・OPEN HOUSE Group’s CSV goal of “providing the houses that customers want”
・Initiatives to promote customer satisfaction
Communities and society・Cooperation with administrative agencies, local governments, and NPOs
・Social contribution activities
・Products That Contribute to Solving Social Issues
・Social Contributions
・Regional Co-creation Projects
Employees・Communication through human resource evaluations
・Dialogue through compliance questionnaires, etc.
・Talent Development
・Work-Style Reforms and Promoting Diversity
・Health and Safety
Business partners・Communication through operations
・Communication through procurement
・Holding various workshops
・Distributing sustainability guidelines to our business partners
・Health and Safety
・Supply Chain Management
Shareholders and investors・Consolidated financial results briefings
・Meetings with institutional investors
・Communication using IR-related tools
・Engagement
・Shareholder returns
・Enhancing corporate value

* NPS is an abbreviation for “Net Promoter Score.” This is one indicator to measure “customer loyalty,” the level of customer affinity for companies, products, or services.

External Evaluation

FTSE Blossom Japan Sector Relative Index

The registered trademark of FTSE Russell (FTSE International Limited and Frank Russell Company) is hereby incorporated by Open House Group Co.,LTD., Inc., as a result of a third-party survey, to demonstrate that it qualified for FTSE Blossom Japan Sector Relative Index inclusion and became a constituent of the Index.
FTSE Blossom Japan Sector Relative Index is widely used to create and evaluate sustainable investment funds and other financial products.

MSCI Japanese Empowering Women Index

Selected as a component of MSCI Japanese Equity Women's Empowerment Index (WIN), a ESG index adopted by the Government Pension Investment Fund (GPIF), as of December 2021.
MSCI Japanese Equity Women's Empowerment Index (WIN) is a ESG index developed by MSCI in the U.S. and is selected for excellence based on disclosed data on gender diversity.
The index is also used as a key investment decision criterion by global investors who closely monitor Initiatives of a company's ESG.

S&P/JPX Carbon Efficient Index

A universe of TOPIX, which is a typical stock index that shows trends in the Japanese market. The index determines the weights of the constituent stocks by focusing on the status of disclosing environmental information and the level of carbon-efficiency (carbon emissions per sales).
By adopting rules such as raising the weights of companies that adequately disclose environmental information and companies with high carbon efficiency (with low carbon emissions per sales), we are aiming to stimulate the stock market by encouraging environmental initiatives and information disclosure throughout the market.

Sustainable Finance

Positive Impact Financing

In February 2022, we entered into an agreement with Mizuho Bank, Ltd. to provide Mizuho Positive Impact Financing (financing types for business companies that do not specify the use of funds) in accordance with the Positive Impact Financial Principles (*2) advocated by the United Nations Environment Programme and Financial Initiative (UNEP FI)(*1), and borrowed funds.

Outline of borrowings
  • Borrowing amount

    10 billion yen

  • Borrowers

    Mizuho Bank

  • Borrowing period

    10years

  • Use of funds

    Business funds

  • Agreement date

    28 February, 2022

  • Execution date

    28 February, 2022

In March 2023, we entered into an agreement with Resona Bank, Limited. to provide Positive Impact Financing (financing types for business companies that do not specify the use of funds) in accordance with the Positive Impact Financial Principles (*2) advocated by the United Nations Environment Programme and Financial Initiative (UNEP FI)(*1), and borrowed funds.

Outline of borrowings
  • Borrowing amount

    5 billion yen

  • Borrowers

    Resona Bank

  • Borrowing period

    10 years

  • Use of funds

    Business funds

  • Execution date

    20 March, 2023

※1 United Nations Environment Programme and Financial Initiative (established to promote sustainable finance on the occasion of the Earth Summit in UNEP FI):1992 year) Partnership between the United Nations Environment Programme and the global financial sector.
※2 Positive Impact Financial Principles: A shared framework of finance for achieving SGDs announced in 2017 by UNEP FI's Positive Impact Working Group, which is a bank and investment member. It is a comprehensive content that evaluates the 3 aspects of sustainable development (environmental, social, and economic) from both positive and negative perspectives.
UNEP FI also presents impact radars as tools for identifying impacts, comprising 22 categories: climate, water, energy, biodiversity, and cultural and traditional.

Syndicated loans

In September 2022, we raised funds through syndicated loans totaling 20.5 billion based on ESG/SDGs Assessment Assessment in ESG/SDGs Assessment Syndication provided by Sumitomo Mitsui Banking Corporation.
This loan is a syndicated loan originated by financial institutions that evaluated the efforts of companies in terms of ESG, disclosures, and contributions to the achievement of SDGs based on their own assessment standards prepared by the Sumitomo Mitsui Banking Corporation and the Japan Research Institute, Limited, and agreed to the purpose of the loan.

Outline of borrowings
  • Borrowing amount

    20.5 billion yen

  • Arranger and agent

    Sumitomo Mitsui Banking Corporation

  • Participant financial institutions

    Sumitomo Mitsui Banking Corporation
    Mizuho Bank, Ltd.
    The Yamanashi Chuo Bank, Ltd.
    The Ashikaga Bank, Ltd.
    Kiraboshi Bank, Ltd.
    San ju San Bank,Ltd.
    The Chiba Kogyo Bank,Ltd.
    The Hokuriku Bank, Ltd.
    The Minato Bank, Ltd

  • Borrowing period

    28 September, 2022 to 28 September, 2032

  • Use of funds

    Business funds

  • Execution date

    28 September, 2022

ESG Information Disclosure

Information on the Group’s initiatives for ESGs is disclosed on this website in a timely and appropriate manner. When disclosing information, system refer to external guidelines such as GRI(Global Reporting Initiative) and ISO26000, SDGs, and also incorporate the views of external stakeholders and experts in order to ensure transparency of corporate management​/reporting​ and to respond appropriately to social demands.

Furthermore, we have prepared the ESG Information Index for ESG investors and ESG rating organizations. The Group discloses comprehensive information corresponding to ESG ratings from MSCI, FTSE and other organizations.

Comprehensive list of the Group’s ESG information